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An Overview of Accounting systems of Bangladesh Lamps Limited

1.0 Introduction

1.1 Transcom Group

Transcom Limited is a Bangladeshi business conglomerate. The businesses under
this group include Beverage, Pharmaceuticals, Newspaper, Radio channel,
Electronics, Foods etc. This group employs more than 10000 people. Transcom
Group is one of the oldest and biggest companies in Bangladesh. Their operation in
Bangladesh initially started in 1885 as a tea plantation company.

Transcom group started its journey in 1885 through tea plantations. This
diversified business house now has interests in many segments in the industrial and
service sectors in Bangladesh. Transcom is the local business partner of
international brands like Pizza Hut, KFC, Pepsi and Philips. Leading Danish
insulin manufacturer Novo Nordisk has also chosen Transcoms pharmaceutical
company Eskayef as the sole manufacturer of its products after China and India in

Some of the brands managed by the group include: Pepsi, 7 Up, Mirinda, KFC,
Pizza Hut, Phillips N.V, Whirlpool, Maybelline, Garnier, Heinz, Frito-Lay, Lindt,
Servier, Novo Nordisk.

List of companies

Transcom Beverages Limited

Prothom Alo

The Daily Star

An Overview of Accounting systems of Bangladesh Lamps Limited

ABC Radio

Transcom Foods Limited

Transcom Electronics Limited

Transcom Cables Limited

Eskayef Bangladesh Limited

Bangladesh Electrical Industries Ltd.

Bangladesh Lamps Ltd.(BLL)

Tea Holdings Limited

Transcom Distribution Co. Ltd.

Saphtahik 2000


Transcraft Limited

Transfin Trading Limited

Trinco Limited

Transcom Mobile Ltd

Mediastar Ltd

An Overview of Accounting systems of Bangladesh Lamps Limited

Tea & Rubber Farms

Mediaworld Ltd

Reliance Insurance Ltd


Bangladesh Lamps Ltd (BLL):

BLL is the pre-eminent manufacturer of electric light bulbs in the country.

The company has an exclusive licensing agreement with PHILIPS
electronics N.V.Holland, under which it manufactures Phillips lighting
products.BLL was incorporated in 1960 as a subsidiary of Philips Holland in
March 1993, Philips sold its entire shares to Transcom.

Bangladesh Electrical Industries Ltd(BEL):

BEL is the official licensee of Philips electronics N.V. Holland. . The
company was incorporated in 1960 as a subsidiary of Philips Holland .in inarch
1993; Philips soldits entire shares to Transcom.

An Overview of Accounting systems of Bangladesh Lamps Limited

Eskayef Bangladesh ltd:

The company which was incorporated in 1980 as a subsidiary of smith Kline
&French USA was acquired by Transcom in 1990
Expert formulation development
Exhaustive and valid testing
Highest standard of manufacture
Guarantee of quality
Chain of trust form product development to prescription.

Since its inception in 2001, animal health & nutrition division runs with the
same motto exclusive through quality
Well equipped modern quality control laboratory
Foreign collaboration for highly technical products
Veterinary therapeutics and veterinary nutrition products for livestock,
poultry and fish.

Transcom Distribution Co. Ltd (TDC)

TDC has the largest independent distribution setup in Bangladesh with full infra
structural facilities provided by a countrywide network of branch offices with
warehouses and delivery vans. The company distributes quality pharmaceutical
products manufactured by ORGANON, SERVIER, ESKAYEF and laboratory
equipment and diagnostic reagents from BIOMERIEUX and BECKMAN
COULTER TDC also markets and distributes color cosmetics, skin and hair
care products from LOREAL Paris. MAYBELLINE New York and GARNIER
.it also markets professional products sold exclusively through hair saloons
under the brand name LOreal PROFESSIONEEL. TDC exclusively markets

An Overview of Accounting systems of Bangladesh Lamps Limited

and distributes the worlds no 1 potato chips LAYS and other salted snacks
from Frito lay.

Transfin Trading Ltd

Transfin is the sole distributor of SANYO Japan, marketing
refrigerators, freezers, microwave ovens, washing machines, air
conditioners, Televisions etc.

Trinco Limited
Trinco is the sole distributor of DAEWOO ELECTRONICS Korea. It
markets DAEWOO televisions, washing machines, microwave ovens, audio
and video equipments.

Transcom Foods Ltd (TFL):

TFL is the franchisee of pizza hut and KFC for Bangladesh, both being the
most popular brands of YUMI international with over 30000 restaurants

Tea Holdings Ltd

THL is an exporter of Tea, Jute goods and Petroleum products. It is also
involved in warehousing, import and sales of agricultural commodities. It
has been awarded the Presidents Export Trophy for outstanding export
performance. The company markets and distributes phone and IT network
components from KRONE Germany. The company represents VITOL
Switzerland and Singapore for petroleum products.

Transcom Beverages Limited (TBL):

The company is the exclusive Pepsi franchisee for Bangladesh.TBL owns
and operates modern plants in Dhaka, Chittagong and Bogra for bottling
pepsi7up. Mountain dew Slice, Miranda and soda. Beverage distribution

An Overview of Accounting systems of Bangladesh Lamps Limited

limited is the distribution arm through which all Pepsi products are
distributed all over Bangladesh.

Media Star Ltd:

Prothom Alo the largest circulated daily newspaper in the country has
established itself as an independent and respected voice in the field of
journalism in Bangladesh.

Transcraft ltd:
A high speed, modern printing and packaging facility


The daily star is the leading and most quoted English newspaper in
Bangladesh. The company also published the Bengali Shaptahik2000 a
quality political and current affairs weekly and Anondodhara the premier
film and entertainment fortnightly.

Reliance insurances Ltd is also another associates of Transcom.

An Overview of Accounting systems of Bangladesh Lamps Limited

2.0 Bangladesh Lamps Limited

Official licensee of Philips Electronics, Holland

Bangladesh Lamps Limited (BLL) is the pre-eminent manufacturer of electric

light bulbs in the country. The company has an exclusive licensing agreement with
PHILIPS Electronics N.V. Holland, under which it manufacturers PHILIPS
lighting products. BLL was incorporated in 1960 as a subsidiary of PHILIPS,
Holland. In March 1993, PHILIPS sold its entire shares to TRANSCOM. The
primary purpose of BLL is to produce and serve Philips GLS lamps (Classic tone,
Soft tone and Anti-Insect types) & Transtec CFL and GLS lamps (Clear & Lustre
types) around the country which are marketed and sold under the governance of
Transcom Electronics Ltd (TEL) as lightening distribution and sales projects.
Due to the necessity of cost effective electricity the TFL tech bulbs are populated
and distributed more and more everyday around the country, BLL became one of
the leading TFL bulb production houses.

2.1 Brief History

An Overview of Accounting systems of Bangladesh Lamps Limited

In early 1961 East Pakistan Lamps Limited (DACCA) prepared to establish

General Lamps System (GLS) production plant of Philips General Lamps
System (GLS) under the 100% ownership of Philips Pakistan

First belt of the Philips GLS officially stated its production on 24th April,
1962 where Mr. V. Rucho was the first factory manager. During that time
Philips GLS were produced 8000 pcs per day .

After the Liberation the East Pakistan Lamps Limited turned in to

Bangladesh Lamps Limited under the supervision of Philips Holland. Now
in the top management bodies Mr. Latifur Rahman as Managing Director,
Mr Habibur Rahman Mollah and Mr. Arshad Haq are as Chief Operation
Officer functionally operated the entire process of the business

In 1976, to increase the1st belt Philips GLS production capacity the double
shift production system introduced

Enhancing the manufacturing capacity of Philips GLS, BLL introduced

another production belt in 1982

In 1986, BLL increased the manufacturing capacity by launching 3rd belt for
Philips GLS production

In 1993, Transcom Electronics Limited (TEL) takeover 100% distribution

ship form BLL under the Philips Holland consideration

Under the ownership of TEL, 4th production Belt begun their manufacturing
of Philips GLS

An Overview of Accounting systems of Bangladesh Lamps Limited

BLL was finally expanded in 6th March 1999.

2.3 BLL Today

Beside Philips GLS production, Transtec CFL is being produced at BLL and
captured substantial market share through its product superiority at the end
of 2007. It has a wide wattage range, classified in Premium and Classic
category with pin and screw type holders like: 8W, 11W, 15W, 23W, 26W,

BLL has already established Florescent Tube Light (FTL) production plant
with contemporary high-tech machineries and going to start full fledged FTL
manufacturing in middle of May 2011

Currently about 400 skilled workers are there who are directly involved with
Transtec lighting and Philips GLS production process.


Koninklijke Philips Electronics N.V. (the Company or Royal Philips

Electronics) is the parent company of the Philips Group (Philips or the
Group). Its shares are listed on the stock markets of Euro next Amsterdam
and the New York Stock Exchange. For over 110 years Philips has been
improving peoples lives with pioneering innovations. In 1891 the Company
was founded to manufacture cost-effective, reliable light bulbs. Today, Philips

An Overview of Accounting systems of Bangladesh Lamps Limited

lights world-famous landmarks like the Pyramids of Giza, the Golden Gate
Bridge and the Times Square New Years Eve Ball. The Company produced test
television signals in 1925and demonstrated television to the public in 1928 21
years before the Dutch government officially introduced television to the
public. In 1998, Philips acquired ATL Ultrasound, marking the beginning of a
three-year acquisition period that made the Company one of the largest medical
technology companies in the world.
In 2003, Philips was awarded the No. 1 ranking in its market sector in the Dow
Jones Sustainability Index. This reflects the Companys world-class leadership
in social, economic and environmental responsibility.

Today, Philips is committed to building upon this heritage to improve the

quality of life in the 21st century. Philips engage from time to time in
cooperative activities with other companies. The performance of unconsolidated
companies has a major impact on the performance of the Philips Group.
Strategic alliances are also important to Philips In total, at the end of 2005;
Philips had approximately 15 production sites in 2 countries, sales and service
outlets in approximately 150 countries, and some 159,000 employees. For over
110 years, since Philipss founding as a manufacturer of light bulbs in 1891,
their technology has been simplifying and enriching peoples lives. Philipss
innovations have led to significant breakthroughs in, for example, medical
imaging, television, lighting, optical technology and integrated circuits.
Building upon this heritage, they remain committed to applying their
understanding of how people interact with technology to deliver advanced yet
user-friendly products and services that meet peoples everyday needs. The
An Overview of Accounting systems of Bangladesh Lamps Limited

company is the official licensee of Philips electronics N.V. Holland for lighting
products, radio and TV sets in Bangladesh. The lighting division distributes
Philips lighting products to over 45,000 outlets all over the country through an
exclusives dealer network .a separated professional lighting team handles
energy saving ,special applications and sports lighting. The consumer
electronics division distributes Philips televisions, radios, music systems and
domestic appliances.

2.5 BLL products

Transtec Classic CFL

Warranty: 1 year

Voltage Range: 170-250V

Lifetime: 8000 Hrs

Saves 80% of electricity

An Overview of Accounting systems of Bangladesh Lamps Limited

Ensures finest and bright light

Built-in over voltage and short circuit problem resistivity

Available on 8W, 11W, 15W, 23W, 26W and 30W in Warm white, Cool
white and Cool Day Light categories with Pin and Screw type.

Transtec HPF CFL

Transtec HPF CFL is countrys first Eco Friendly CFL which intends to save
energy as well as reduce environment pollution (as the usage of coal, gas & oil to
produce energy will be less). But still we are producing at least 45% additional
energy for low power factor CFL which is wasted as reactive power thus the focus
on energy saving is deviated. For Transtec HPF CFL the requirement of energy is
at least 80% (or even more) lesser than it would be for an equivalent bulb (we
consider 23W HPF CFL =100W bulb). So it significantly reduces the usage of
natural resources to produce energy. The emission of CO2 & Mercury from power
generation plant will be really low to ensure a real green environment.

Warranty: 1 year

Gives 10-15% brighter light

Lamp life: 10000 Hrs (minimum)

An Overview of Accounting systems of Bangladesh Lamps Limited

Capable to preserve 80% of its' brightness even after 2000 hours (according
to IEC standards)

Saves 80% of electricity as well as a major portion of electronic system loss

Capability to convert 90% of energy to light makes it 90% energy efficient

(country's highest energy efficient bulb)

Available on 8W, 11W, 15W, 23W, 26W and 30W in Warm white and Cool
Day Light categories with Pin and Screw type.

Transtec GLS

GLS (Clear) bulbs are available on 25W, 40W, 60W, 100W and 200W

GLS (Lustre) bulbs are available on Red, Yellow, Blue, Green and Water

Lifetime: 1000 Hours

Made of best quality filament

Best quality filament ensures correct wattage and brighter light

Uses fuse-wire for complete safety

An Overview of Accounting systems of Bangladesh Lamps Limited

Transtec Halogen GLS

Transtec Halogen Lamp is a newly evolved energy saving lighting solution. It's a
new range of lamp which offers the versatility of the traditional halogen lamps
with advantages of energy saving. With twice lamp life and pure bright light
Trastec halogen lamps are the ideal alternative to incandescent lamps. Same
familiar light bulb shape, brighter light output yet at less expense! Transtec
halogen lamps are fully dimmable and give 100% light output instantly. 30%
energy saving with twice the product life minimizes your lamp replacement and
electricity costs. A 42W Transtec halogen lamp gives 650 lumen output (15.3
lumen/watt) which is equal or even higher than a 60W incandescent bulb (11.8
lumen/watt). Thus a Transtec halogen lamp consumes 30% less power ((60-42)/60
x 100%) than a 60W incandescent bulb for same light output. The same
comparison phenomenon is also applicable between a 70W halogen lamp and a
100W incandescent bulb.

Gives equal lumen output of ordinary Incandescent lamp at 30% less energy

Expected lifetime: 2000 hrs (twice of ordinary Incandescent lamp)

Can be used with light dimmer

An Overview of Accounting systems of Bangladesh Lamps Limited

Lower CO2 Emission

Gives 100% light output instantly

Lasts 2 times longer than general bulbs

No Mercury content

Transtec Ballast

Rating: 220-240V, T8x1, 36W

Can operate with actual rated Watt (At stable condition, provide >= 32W at
rated voltage)

Low voltage starting (able to drive STL even in 110V)

Very wide range of working voltage (150-300V)

Higher life time, more than 10000 Hrs

Flicker free starting and Noise less operation

An Overview of Accounting systems of Bangladesh Lamps Limited

Free from Magnetic Interference and Stroboscopic Effect

High Power Factor

Low Harmonic Distortion, Internal Power Loss, Heat generation and

Ambient temperature

Save 30% Energy if Compared with Conventional Magnetic Ballast

Very easy method of wiring/Tube connection

Light in weight and Smart Outlook.

Transtec Tube-light

Available on 18W and 36W

The product is produced at in-house tube-light plant by using advanced

technology machines from England

Superior quality Halo Phosphor from Japan & Triple coil ensures brighter

An Overview of Accounting systems of Bangladesh Lamps Limited

It is the first fluorescent tube light with anode ring produced in Bangladesh
which extends the lamp life.

2.6 Organogram of Accounting Department

Chief Financial Officer

General Manager


An Overview of Accounting systems of Bangladesh Lamps Limited


Bangladesh Lamps Limited (BLL)

2.7 Daily Activities of Accounting Department

Accounts department is very important department of any business institution.

There are many transactions are made in accounts. The accounts department of
Bangladesh Lamps Limited (BLL) does following works.

Record the transactions in General ledger

Reconcile the bank statement with cash book
Processing of bill and documents
Prepare the monthly salary statement.
Record purchase orders (what was ordered), inventory receipts (what
arrived), and costing (what the vendor invoiced)
Paying salaries to the employees
Collection of money from dealer and deposit to bank
Payment of cash and cheque
Recording of trade promotion and different offer of products
Recording of LC
Preparation of financial statements etc.

An Overview of Accounting systems of Bangladesh Lamps Limited

2.8 Accounting software

Bangladesh Lamps Limited (BLL) use the and ERP

accounting software for doing their daily accounting activities.

In Bangladesh Lamps Limited (BLL) ERP software has following features

Accounts Receivable
Accounts Payable
General Ledger
Inventory Control
Order Entry
Purchase Orders

An Overview of Accounting systems of Bangladesh Lamps Limited

ERP Software Sample

2.9 Why Bangladesh Lamps (BLL) use ERP software - because

ERP systems centralize business data, which:

Eliminates the need to synchronize changes between multiple systems

consolidation of finance, marketing, sales, human resource, and
manufacturing applications

Brings legitimacy and transparency to each bit of statistical data

Facilitates standard product naming/coding

An Overview of Accounting systems of Bangladesh Lamps Limited

Provides a comprehensive enterprise view (no "islands of information"),

making realtime information available to management anywhere, any time
to make proper decisions

Protects sensitive data by consolidating multiple security systems into a

single structure.

An ERP system covers the following common functional areas. In many ERP
systems these are called and grouped together as ERP modules:

Financial accounting: General ledger, fixed asset, payables including

vouchering, matching and payment, receivables cash application and
collections, cash management, financial consolidation

Management accounting: Budgeting, costing, cost management, activity

based costing

Human resources: Recruiting, training, roistering , payroll, benefits, 401K,

diversity management, retirement, separation

Manufacturing: Engineering, bill of materials, work orders, scheduling,

capacity, workflow management, quality control, manufacturing process,
manufacturing projects, manufacturing flow, product life cycle management.

Order Processing: Order to cash, order entry, credit checking, pricing,

available to promise, inventory, shipping, sales analysis and reporting, sales

An Overview of Accounting systems of Bangladesh Lamps Limited

Supply chain management: Supply chain planning, supplier scheduling,

product configuration, order to cash, purchasing, inventory, claim
processing, warehousing (receiving, put away, picking and packing).

Project management: Project planning, resource planning, project costing,

work breakdown structure, billing, time and expense, performance units,
activity management

Customer relationship management: Sales and marketing, commissions,

service, customer contact, call center support - CRM systems are not always
considered part of ERP systems but rather Business Support systems (BSS).

Data services : Various "selfservice" interfaces for customers, suppliers

and/or employees


The fundamental advantage of ERP is that integrating myriad businesses processes

saves time and expense. Management can make decisions faster and with fewer
errors. Data becomes visible across the organization. Tasks that benefit from this
integration include

Sales forecasting, which allows inventory optimization.

Chronological history of every transaction through relevant data compilation

in every area of operation.

Order tracking, from acceptance through fulfillment.

Revenue tracking, from invoice through cash receipt.

An Overview of Accounting systems of Bangladesh Lamps Limited

Matching purchase orders (what was ordered), inventory receipts (what

arrived), and costing (what the vendor invoiced).


ERP can improve quality and efficiency of the business. By keeping a

company's internal business processes running smoothly, ERP can lead to
better outputs that may benefit the company, such as in customer service and

ERP supports upper level management by providing information for

decision making.

ERP creates a more agile company that adapts better to change. ERP makes
a company more flexible and less rigidly structured so organization
components operate more cohesively, enhancing the businessinternally
and externally

ERP can improve data security. A common control system, such as the kind
offered by ERP systems, allows organizations the ability to more easily
ensure key company data is not compromised

ERP provides increased opportunities for collaboration. Data takes many

forms in the modern enterprise. Documents, files, forms, audio and video,
emails. Often, each data medium has its own mechanism for allowing
collaboration. ERP provides a collaborative platform that lets employees
spend more time collaborating on content rather than mastering the learning
curve of communicating in various formats across distributed systems.

An Overview of Accounting systems of Bangladesh Lamps Limited


Customization is problematic. Compared to the best-of-breed approach, ERP

can be seen as meeting an organizations lowest common denominator
needs, forcing the organization to find workarounds to meet unique

Re-engineering business processes to fit the ERP system may damage

competitiveness or divert focus from other critical activities.

ERP can cost more than less integrated or less comprehensive solutions.

High ERP switching costs can increase the ERP vendor's negotiating power,
which can increase support, maintenance, and upgrade expenses.

Overcoming resistance to sharing sensitive information between departments

can divert management attention.

Integration of truly independent businesses can create unnecessary


Extensive training requirements take resources from daily operations.

An Overview of Accounting systems of Bangladesh Lamps Limited

Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP

systems are not well suited for production planning and supply chain
management (SCM).

Harmonization of ERP systems can be a mammoth task (especially for big

companies) and requires a lot of time, planning, and money.

An Overview of Accounting systems of Bangladesh Lamps Limited

2.10 In Bangladesh many companies use the Tally Software. But BLL use
ERP software.

The differences would be:

1.Tally is a tool to record your accounting details, not an ERP package.
2.Tally is not integrated with any other applications.
3.Tally is not modularized like GL, purchasing , A/P, A/R, order management etc as
any ERP application.
4.Tally has limited reporting capabilities.
5.Tally is not a web based application.

An Overview of Accounting systems of Bangladesh Lamps Limited


This report is done as partial requirement of the 3 months internship program

for the BBA students of United International University, Bangladesh. During my
internship period I have joined Bangladesh lamps Ltd at Head office of
Mohakhali. The chairperson of the Internship and Placement Committee advised
to prepare reports on our assigned jobs after the completion of the Internship in
the respective organizations. The title of the report is An Overview Of Accounting
Systems of Bangladesh lamps Ltd.


In order to fulfill the requirement of the Internship program it has chosen

Bangladesh lamps Ltd Accounting Department placed me Head office of
Mohakhali. The overall topic of the report has been selected by discussion between
me and course instructor .The topic of my report is An Overview Of Accounting
Systems of Bangladesh lamps Ltd.

An Overview of Accounting systems of Bangladesh Lamps Limited

3.2 Objectives of the report

The main objective of the study is to know the accounting systems of Bangladesh
Lamps Limited (BLL).

Primary objective:
The primary objective of the study is to complete the partial requirement of
awarding of the BBA degree from the school of business and economics, United
International University.

Secondary Objectives:

1. To highlight the accounting systems this should be followed by Bangladesh

Lamps Limited (BLL).

2. To critically evaluate the existing accounting practices in the small-scale of

the Bangladesh.

3. To identify the accounting systems of the Bangladesh Lamps Limited (BLL).

4. To Understand and analyze the overall activities of Bangladesh Lamps

Limited (BLL).

5. To learn how to use accounting software like ERP .

An Overview of Accounting systems of Bangladesh Lamps Limited

3.3 Research Methodology

The report has been written on the basis of information collected from primary as
well as secondary sources. The primary information has been collected from the
personnel. In this case I have used physical attendance to get positive, negative
both sides of the report. Then I got relevant data for the required report.

For smooth and accurate study everyone has to follow some rules and regulation.
The study input was collected from two sources:

Primary Data:

Primary Data

Conversation with personnels of Bangladesh Lamps Ltd.

Personal Communication & Working experien

Financial documents (not publicly publish

Secondary Data:
The data is collected through the secondary sources like:
Annual Reports of the company.
Office brochures and other documents.
Magazines, Reports of the company.
Bangladesh Lamps website.

An Overview of Accounting systems of Bangladesh Lamps Limited


i. Area

This report covers Bangladesh Lamps Limited (BLL) Products and Services,
Organizational Overview, accounting functions performed by Bangladesh Lamps
Limited (BLL), Financial statement analysis.


The time period is two months.

3.5 Limitations of the Report

Every matter has got some limitations. So this is also not an exception. The
limitations of this internship report are been sated below:

As an organization it has some restriction to serve all the real data to the
general people as a result the study is mostly depends on official files and
annual reports.
Every organization has its own secrecy that is not revealed to others.
The functions and activities of Bangladesh Lamps Ltd are too vast, so they
change their strategy day by day. As a result I cant collect update
Almost all the personnel were apparently too busy to assist us with their
valuable support.
During the internship, in many part of our enquiry, our performance was
hindered by some sort of inexperience.

An Overview of Accounting systems of Bangladesh Lamps Limited

The time two months is not enough for a research or study the whole
organization. But I have tried my best to complete my report as per the

4.0 Background of the report

4.1 Accounting

Accounting is the language of business; it provides information to

managers, owners, investors, governmental agencies, and others
inside and outside the organization. The main objectives of Accounting is
to safeguard the interests of the business, its proprietors and others connected with
the business transactions. This is done by providing suitable information to the
owners, creditors, shareholders, Government, financial institutions and other
related agencies.

Accounting performs the following functions:

Analyzing: Looking at what happened and how the business was affected.
Recording: Recording all the transactions in subsidiary books for purpose
of future record or reference. It is referred to as "Journal."
Classifying: Grouping all the same activities (e.g., all purchases) together.
Summarizing: All recorded transactions in main books will be summarized
for the preparation of Trail Balance, Profit and Loss Account and Balance
Reporting: Issuing the statements that tell the results of the previous

An Overview of Accounting systems of Bangladesh Lamps Limited

Interpreting: Examining the statements to determine how the various

pieces of information they contain relate to each other.
Communication: Providing the reports and financial statements to people
who are interested in the information, such as the businesss decision
makers, investors, creditors, and governmental agencies .

4.2 Importance of Accounting

Organizations often need a way to keep score when conducting business

operations. Accounting usually fits this need because it allows companies to
create financial reports that can be compared with other companies or an industry
standard. Business owners and managers also use accounting to review the
efficiency of operations. This information may help owners and managers make
business decisions and improve the companys profitability.

Accounting allows businesses to calculate their profit and perform analyses.

Accounting is important for determining if a company's earnings reports are
accurate, making it important for stockholders and regulators

4.3 Understanding the importance of accounting software in business

Accounting software is a class of computer programs that enable you to manage

your business's financial transactions. Such programs can vary widely in scope,
with some programs designed for little more than simple bookkeeping and some
designed to manage the entire financial comings and goings of large businesses.
Using accounting software helps companies to use the resources in their
accounting departments efficiently, and can reduce costly book keeping mistakes.

An Overview of Accounting systems of Bangladesh Lamps Limited


Accounting software can help to increase the accuracy of your records by reducing
or eliminating human errors in calculation. Manual bookkeeping processes involve
making a lot of mathematical calculations by hand. An incorrect calculation early
on in the in the process could have a great impact on the end balance. Computers,
on the other hand, are virtually incapable of making such errors. However, it
should be noted that accounting software is not immune to human errors arising
from data entry or interpretation mistakes.


Using accounting software allows businesses to process their accounts with greater
speed than manual processing. Part of this speed increase comes from the use of
computers, which are able to process figures far faster than the human brain. In
addition, accounting software allows organizations to increase efficiency by
introducing automation. Say, for example, that a business needs to record sales tax
on all of its transactions. Accounting software could be configured to do that for
each entry automatically, rather than having a staff member work out the tax


The benefits resulting from the speed and efficiency of accounting software often
go hand-in-hand with reduced overall costs. The use of an accounting program
allows each member of the accounting team to do more in a given time, potentially
meaning that a smaller team is needed overall. This, in turn, can reduce the

An Overview of Accounting systems of Bangladesh Lamps Limited

accounting department's payroll and administration costs. However, these savings

should always be balanced against the cost of the software itself and any additional
hardware needed to run it.


Accounting software helps businesses to supply the necessary members of staff

with timely and accurate financial information. For example, suppose that a
company's finance director needs a report of cash flow to take to a meeting in two
hours. Many accounting software systems have built-in reporting modules that
enable users to create this type of report by simply filling in a form or clicking a
button. However, creating such a report manually would be a time-consuming


Filing your business taxes can be a complex process, requiring you to keep close
track of all your business's transactions. Accounting software helps to make this
process easier by ensuring that all of your business's financial details are in one
place. This allows you to calculate your return itself semi-automatically, rather
than spending time and resources working out the necessary details by hand.

An Overview of Accounting systems of Bangladesh Lamps Limited

4.4 Accounting concepts and Principles

Economic entity concept : This is the concept that the transactions of a business
should be kept separate from those of its owners and other businesses. This
prevents intermingling of assets and liabilities among multiple entities

Going concern concept : This is the concept that a business will remain in
operation for the foreseeable future. This means that you would be justified in
deferring the recognition of some expenses, such as depreciation, until later
periods. Otherwise, you would have to recognize all expenses at once and not defer
any of them

Monetary unit : All transactions of the business are recorded in terms of money .It
provides a common unit of measurement

Dual Aspect Concept: According to this concept, every business transaction

involves two aspects, namely, for every receiving of benefit and. there is a
corresponding giving of benefit. The dual aspect concept is the basis of the double
entry book keeping. Accordingly for every debit there is an equal and
corresponding credit. The accounting equation of the dual aspect concept is:
Capital + Liabilities = Assets
Assets = Equities (Capital)

An Overview of Accounting systems of Bangladesh Lamps Limited

Time period concept: This is the concept that a business should report the results
of its operations over a standard period of time. This may qualify as the most
glaringly obvious of all accounting principles, but is intended to create a standard
set of comparable periods, which is useful for trend analysis.

Cost concept : This is the concept that a business should only record its assets,
liabilities, and equity investments at their original purchase costs. This principle is
becoming less valid, as a host of accounting standards are heading in the direction
of adjusting to fair value.

Accrual concept : This is the concept that accounting transactions should be

recorded in the accounting periods when they actually occur, rather than in the
periods when there are cash flows associated with them. This is the foundation of
the accrual basis of accounting. It is important for the construction of financial
statements that show what actually happened in an accounting period, rather than
being artificially delayed or accelerated by the associated cash flows.

Reliability concept : This is the concept that only those transactions that can be
proven should be recorded. For example, a supplier invoice is solid evidence that
an expense has been recorded. This concept is of prime interest to auditors, who
are constantly in search of the evidence supporting transactions.

Revenue recognition concept : This is the concept that you should only recognize
revenue when the business has substantially completed the earnings process. So
many people have skirted around the fringes of this concept to commit reporting
fraud that a variety of standard-setting bodies have developed a massive amount of
information about what constitutes proper revenue recognition.

An Overview of Accounting systems of Bangladesh Lamps Limited

Materiality principle : This is the concept that you should record a transaction in
the accounting records if not doing so might have altered the decision making
process of someone reading the company's financial statements. This is quite a
vague concept that is difficult to quantify, which has led some of the more
picayune controllers to record even the smallest transactions.

Conservatism principle : This is the concept that you should record expenses and
liabilities as soon as possible, but to record revenues and assets only when you are
sure that they will occur. This introduces a conservative slant to the financial
statements that may yield lower reported profits, since revenue and asset
recognition may be delayed for some time. Conversely, this principle tends to
encourage the recordation of losses earlier, rather than later. This concept can be
taken too far, where a business persistently misstates its results to be worse than is
realistically the case.

Consistency principle : This is the concept that, once you adopt an accounting
principle or method, you should continue to use it until a demonstrably better
principle or method comes along. Not following the consistency principle means
that a business could continually jump between different accounting treatments of
its transactions that makes its long-term financial results extremely difficult to

Full disclosure principle : This is the concept that you should include in or
alongside the financial statements of a business all of the information that may
impact a reader's understanding of those financial statements. The accounting
standards have greatly amplified upon this concept in specifying an enormous
number of informational disclosures.

An Overview of Accounting systems of Bangladesh Lamps Limited

4.5 Components of the accounting system

Accounts receivable

Accounts payable

Order entry

Inventory control

Cost accounting


Fixed assets accounting

4.6 Components of the accounting software systems

1. People

A good accounting software system collects, records, stores and processes

accounting and other business information needed by decision-makers. Therefore,
it is extremely important to consider who will be using your system. Are they well-
versed in technology? Are they literate in accounting? How will people be
accessing information? Will each person have their own computer and account, or
will they all need to go through a gatekeeper who will supply their requests?
Furthermore, how will people be inputting information? What are their skills and

An Overview of Accounting systems of Bangladesh Lamps Limited

2. Procedures and instructions

These days, no one likes to read instructions. However, accounting systems

software requires rigorously training and supporting staff. They need to learn how
to use the software, and then need resources to answer questions that come up.
Most companies also keep written reference manuals and other materials to help
address technical points as they arise

3. Data

An accounting system is all about slicing and dicing data, collecting information
and storing it in a meaningful way so that it can be quickly retrieved by decision
makers. Therefore, as you create an accounting system, think about the nature of
the data you plan to collect and the information needs of decision makers.

4. Hardware

Accounting information systems exist within a technology infrastructure, which

usually includes hardware like computers, peripheral devices, and network
communications devices. Today there are moves to keep data in "the cloud," using
online servers. There is still hardware involved, but that hardware is offsite.
Furthermore, even when keeping data in the cloud, a company still must keep a
sufficient set of computers around to access information where needed.

An Overview of Accounting systems of Bangladesh Lamps Limited

5. Software

Don't forget the software itself. Software processes the accounting data. Quality
software should be selected to meet the needs of the organization. Larger
organizations need more sophisticated systems. They often hire specialist
consultants to select and implement their accounting systems.

6. Security

Knowledge is power. Therefore, businesses must keep their accounting information

systems secure, using passwords, physical safeguards, and other protections.
Unauthorized access to these systems can lead to theft and disclosures of damaging
confidential information. Business also must back up their data continuously.

An Overview of Accounting systems of Bangladesh Lamps Limited

4.7 The Design of Accounting Systems

The accounting system is essentially a database of information about business

transactions. The primary use of a database is as a source of information, so you
need to design the accounting system in a manner that is cost-effective in providing
the needed information. The key factors in accounting system design are:

single or double entry - A very small business operates simply by recording

cash receipts and payments in its checkbook. This is known as a single entry
system, and is only adequate when a business owner has no interest in
learning about the amount of the assets and liabilities held by a business.
The single entry system is extremely simplistic, but can be adequate.

The double entry system is designed to record not only sales and expenses,
but also assets, liabilities, and shareholders' equity, and so provides
considerably more information. The double entry system requires more skill
in recording transactions.

Cash or accrual basis - The cash basis of accounting only records

transactions as cash is received or spent, while the accrual basis records
transactions when they should be recognized, irrespective of changes in
cash. The accrual basis is needed to be compliant with any of the accounting
frameworks, such as Generally Accepted Accounting Principles or
International Financial Reporting Standards. If you expect to need audited
financial statements in the future, use the accrual basis of accounting.

An Overview of Accounting systems of Bangladesh Lamps Limited

Account code structure - The account code structure is the numeric or

alphanumeric designation given to each account in which information is
stored. A lengthy account code, such as one with seven or more digits,
allows for a great deal of specific record keeping. However, it also requires
more work to maintain, and there is a higher risk that information will be
incorrectly coded into the wrong accounts. Thus, it is generally best to keep
the complexity (i.e., length) of the account code structure to a minimum.
Smaller organizations may find that as little as a three-digit account code
structure is sufficient for recording information, while larger, multi-division
entities may require considerably more complex code structures.

Accounts used - You must decide which accounts to create. At a minimum

(for a double entry accrual system) you will need accounts for cash, accounts
receivable, inventory, fixed assets, accounts payable, accrued liabilities,
equity, revenue, cost of goods sold, and administrative expenses. However,
even a smaller business needs several times this number of accounts in order
to keep adequate track of its operations. In particular, it will likely be
necessary to maintain a number of different expense accounts, in order to
more closely examine expenses.

Divisional representation- A larger business may adopt a standard set of

accounts and replicate them for each of its subsidiaries. This may also be
necessary for individual product lines or facilities. This level of fine-grained
detail is especially common when a business operates an activity-based
costing system.

An Overview of Accounting systems of Bangladesh Lamps Limited

Reports - The information stored in the accounting system must be

aggregated into a system of reports that are used either to present the
financial results and position of a business, or to provide more specific
reports of financial results. Many of these reports are prepackaged with
accounting software packages, though a business may have special needs
that call for custom-designed reports.

Procedures An accounting system is not operational until there are a set of

procedures in place that show users how the system is to be operated. The
more common of these procedures are usually documented in some detail
and imparted to employees through formal training sessions.

Controls - A number of accounting controls are needed to ensure that an

accounting system operates in the manner intended. These controls will be
specific to the company, and may call for the participation of the company's
auditors or an outside consultant to ensure that the set of controls installed
are appropriate for the operations of the business.

An Overview of Accounting systems of Bangladesh Lamps Limited

5.0 Financial Statement Analysis

Financial statements are a structured representation of the financial position and

financial performance of an entity. The objective of financial statements is to
provide information about the financial position, financial performance and cash
flows of an entity that is useful to a wide range of users in making economic

Financial statements provide information about an entity's: (a) assets; (b)

liabilities; (c) equity; (d) income and expenses, including gains and losses; (e)
contributions by and distributions to owners in their capacity as owners; and (f)
cash flows. This information, along with other information in the notes, assists
users of financial statements in predicting the entity's future cash flows and, in
particular, their timing and certainty.

5.1 Qualitative characteristics of financial statements

Qualitative characteristics of financial statements include:

Relevance (Materiality)

Faithful representation

Enhancing qualitative characteristics include:



An Overview of Accounting systems of Bangladesh Lamps Limited



The financial statements of Bangladesh Lamps, prepared in accordance with

Bangladesh Financial Reporting Standards (BFRS), give a true and fair view of the
state of the company's affairs as at 31 December 2013 and of the results of its
operations and cash flows for the year then ended and comply with the Companies
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and
Balance sheet

Bangladesh Lamps Limited

Statement of Financial Position

as at 31 December 2013

2013 2012
Taka Taka
Property, plant and equipment 163,421,982 178,226,377
Capital work in progress 630,000 14,910,305
Intangible assets 1,025,222 1,476,946
At cost 55,346,673 38,819,973
Fair value adjustment 305,912,432 300,111,790
361,259,105 338,931,763
Loans and deposits 3,340,953 3,524,603
Total non-current assets 529,677,262 537,069,994

Inventories 248,351,772 331,047,582

Trade and other debtors 248,436,940 239,346,818
Advances, deposits and
6,570,224 7,905,032
Advance income tax 123,360,941 100,658,776

An Overview of Accounting systems of Bangladesh Lamps Limited

Cash and cash equivalents 2,715,841 128,578,755

Total current assets 629,435,718 807,536,963
Total assets 1,159,112,980 1,344,606,957

Share capital 93,706,080 93,706,080
Reserves and surplus 496,176,483 520,878,659
Total equity 589,882,563 614,584,739

Long term loan 28,441,377 50,063,367
Deferred liability - gratuity
44,898,845 30,883,202
Deferred tax liability 10,247,909 18,181,680
Total non-current liabilities 83,588,131 99,128,249

Current portion of long term

20,651,574 32,109,911
Short term finance 250,421,311 353,936,022
Trade and other creditors 75,002,648 98,251,774
Accrued expenses 12,486,967 7,436,463
Other liabilities 9,576,627 19,793,016
Provision for tax 97,578,329 90,404,166
Provision for royalty 19,924,830 28,962,617
Total current liabilities and
485,642,286 630,893,969
Total liabilities 569,230,417 730,022,218
Total equity and liabilities 1,159,112,980 1,344,606,957

An Overview of Accounting systems of Bangladesh Lamps Limited

Income Statement

Bangladesh Lamps Limited

Statement of Comprehensive Income

for the year ended 31 December 2013

2013 2012
Taka Taka

Sales (net of VAT and

1,031,612,462 953,526,835
Cost of goods
(787,521,310) (747,110,451)
Gross profit 244,091,152 206,416,384

Other income 14,874,206 12,337,522

(250,792,346) (233,390,036)
Profit/(loss) from
8,173,012 (14,636,130)

Finance expense (38,357,215) (62,432,153)

Finance income 17,662,993 30,031,151
Net finance
(20,694,222) (32,401,002)
Profit/(loss) before (12,521,210) (47,037,132)
An Overview of Accounting systems of Bangladesh Lamps Limited

contribution to WPPF

Contribution to
- -
Profit/(loss) before
(12,521,210) (47,037,132)
income tax

Income tax
759,608 (2,759,830)
Net profit/(loss) for the
(11,761,602) (49,796,962)

Other comprehensive

Changes in fair value of

available-for-sale financial 5,800,642 (159,469,767)
Total comprehensive
(5,960,960) (209,266,729)

Earnings per share (par

(1.26) (5.31)
value Tk 10 each)

An Overview of Accounting systems of Bangladesh Lamps Limited

Cash Flow Statement

Bangladesh Lamps Limited

Statement of Cash Flows

for the year ended 31 December 2013

2013 2012
Taka Taka
Cash flows from operating

Collection from
1,214,762,478 1,175,124,067
Payment to suppliers (572,217,347) (725,440,140)
Payment to
(104,061,955) (97,084,774)
Payment for services
(270,313,910) (232,919,024)
VAT and SD paid (155,595,088) (161,505,055)
Contribution to
- (3,249,183)
Contribution to (2,252,646) (1,633,456)

An Overview of Accounting systems of Bangladesh Lamps Limited

provident fund
Payment of royalty (18,885,999) -
Cash generated
91,435,533 (46,707,565)
from operation

Cost recovery 6,548,667 13,090,000

Collection from sale of scrap and
3,005,263 3,037,006
Interest paid (20,694,222) (32,401,002)
Income tax paid (22,702,165) (24,377,641)
Net cash generated from/(used
57,593,076 (87,359,202)
to) operating activities

Cash flows from investing


Payment for
(16,526,700) -
investment in shares
Dividend received 5,320,276 1,713,183
Proceeds from sale of property,
- 708,400
plant and equipment
Payment for acquisition of
(6,768,569) (29,552,351)
property, plant and equipment
Payment for acquisition of
- -
intangible assets
Net cash inflows/(outflows)
(17,974,993) (27,130,768)
from investing activities

Cash flows from financing


Dividend paid (28,885,959) (144,826)

Repayment of long
(33,080,327) (27,751,700)
term loan

An Overview of Accounting systems of Bangladesh Lamps Limited

Net cash inflows/(outflows)

(61,966,286) (27,896,526)
from financing activities

Net cash inflows/(outflows) for

D. (22,348,203) (142,386,496)
the year (A+B+C)

Opening cash and cash

E. (225,357,267) (82,970,771)

Closing cash and cash

F. (247,705,470) (225,357,267)
equivalents (D+E)

Closing cash and cash equivalents

represent the following:

Cash and cash

2,715,841 128,578,755
Short term finance used for cash
(250,421,311) (353,936,022)
management purpose
(247,705,470) (225,357,267)

An Overview of Accounting systems of Bangladesh Lamps Limited

6.0 Findings

Due to political turmoil profit growth could not be sustained in 2012.

The overall state of business of the company has improved during the year
2013 , due to a number corrective measures taken by the management such
as cost reduction, control over factory overhead and broadening of sales
network etc.

The use of CFL , registered continuous growth because of its energy saving
benefit and longer life.

BLL has achieved 8.19% growth in sales revenue compared to last year.

The company achieved moderate business results in 2013.This was possible

mainly because of diversification of products like CFL and FTL.

An Overview of Accounting systems of Bangladesh Lamps Limited

Bangladesh Lamps Ltd setting new standards in Lighting industries arena in the
time of turbulent economic conditions. As part of the long-term financial reform
and modernization plan of the government, this sector will be converted into a
public limited company. Bangladesh Lamps Ltd. helps to mobilize the resources to
stay strong in the key areas of operation. Though it has a wide range of network
and confidence from the customers but it has some problems those problems
reduce it income.

This internship program that is mandatory for my BBA program, although short-
date, obviously has helped my farther thinking about my career. I have tried my
best to incorporate the report with necessary relevant information in my report.

An Overview of Accounting systems of Bangladesh Lamps Limited

3. www.Bangladesh
4.Bangladesh Lamps Annual report
Annual report of 2013
Annual report of 2012

An Overview of Accounting systems of Bangladesh Lamps Limited


An Overview of Accounting systems of Bangladesh Lamps Limited